IFC to infuse around $25 mn in Global Hospitals

Funds will be used to support expansion plans and projetcs of GE Medical

Chennai-based Ravindranath GE Medical Associates Pvt Ltd (RGE), which runs a hospital chain under the name “Global Hospitals”, plans to raise around $25 million from the International Finance Corporation (IFC). Portion of the money will be infused as equity.

Founded in 1998, RGE operates a chain of five hub hospitals and three spoke hospitals with a total of around 1,000 operational beds in Chennai, Hyderabad, Bangalore and Mumbai.

RGE also operates telemedicine centers at seven locations in India, including three in low income states in East/North-east India where local tertiary care access is extremely limited.

The company has lined up projects worth around $60 million over the next two years, which will increase number of operational beds from 1,000 to 1,800 in fiscal 2016, within the Company’s existing infrastructure, and rationalise RGE’s capital structure by refinancing existing borrowings.

The proposed IFC investment of up to $25 million comprises of an A Loan for IFC’s own account and equity in RGE. The proceeds of IFC’s financing will be used to partially fund the project.

The promoter of the company is Dr K Ravindranath, a specialist in gastroenterology and laparoscopic surgery, who has over three decades of experience in the healthcare sector. In addition to the Sponsor, other significant shareholders include Indivision India Partners, Dr Haranath Policherla and an Indian portfolio management company.